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we may have a problem. the budget deal is not even close, according to the latest sources we can find, what looked like progress on a deal 36 hours ahead of a deadline. we have serious issues here. and big things to overcome. i'm neil cavuto and it's hot outside and heated inside. two sides are still at a logjam over the basic issues that have sprayed them from very beginning in this debt ceiling debate and whether we extend it and address some of the spending issues that are so inherent and important in this ongoing debate. here is the latest we can tell you. the progressive caucus, 75
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members strong in the house of representatives, bernie sanders in the senate, saying that what they are talking about than the deal itself and dead set against approving any middle ground measure approved by republicans and democrats at this juncture. we have senate democrats meeting with this very latest impasse. white house says it's willing to extend the debt deadline by maybe a couple days if necessary if the two sides are close. as we stress, that is not a given right now. the first chance for stock markets comes from few hours, asians open few hours and middle eastern markets, they were find of nonplused by these developments. we have pennsylvania republican
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pat toomey and there is a rebellion among the tea party ranks. so if you had to handicap it, where do you think it stands? >> i was afraid you are going to ask me that. it's a tough spot. but get next done in the 24, 48 hours. it takes intense pressure to get an outcome in congress and this is probably not an exception. >> neil: would the pressure to come to markets to tank, is it pushing for less? >> it could, that could be one source. it's hard to predict how the markets will react the bond markets have been stable. bond prices are much higher and at the close on friday than they were in january and february of this year. equities have been but we had a sell-off in commodities last
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week. >> neil: but factoring in the deal would be made. shorter term interest rates have been a lot more volatile til that would hinge on deal being made. should they be concerned? >> i think what markets are most concerned about is actually not the timing of an exact deal and august 2nd so much as whether we're working could construct to solve the problem. we're in an unsustainable, with a gpdp on 70% and on a path in a hundred percent in the relatively near future. this is unsustainable. if we don't fix that fundamental dynamic we're going to be punished severely by the markets. >> neil: i talked to a tea party leader and saying we will remember how they will wrote. we will remember what they do. it sounded threatening. do you feel threatened? >> i don't look at it that way, neil.
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i made it clear when i was campaigning, i have two big criteria. i want to see immediate cuts in spending and i want to see structural reforms so we can get our debt to gdp ratio that is sustainable. it's not now. we won't have strong economic growth and job creation until we solve this fiscal problem. >> neil: but if you have the progressives, more liberal in the house, but it doesn't cut it with us, 75 members strong, that is virtually guaranteeing you have very little democratic participation. then you have a number of tea partyers that don't want to concede much in the house, exacerbating things for speaker boehner. that would imply a wall here. >> my guess we haven't seen the details, it will pass without the left wing of the democratic
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wing of the party and more conservative members of the republican party but excluding those two you can get the 218 in the house. my guess is where it ends up. >> neil: always good you. we're getting word as we speak to the senator, the meeting was been postponed. leadership meeting continues but again it's all the all the indians in the final count and not the chiefs. harry reid is trying to marshal the forces together to get something together on middle ground effort. he self-torpedoed his own measure here. we're following it closely. what it means that the general troops have not met with the leadership. susan collins, republican from the state of maine, she is considered one of those crucial swing votes that could bridge the two divides.
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talk about divides? >> that is true. but i'm an optimist we're going to reach an agreement. the consequences of not reaching an agreement are simply catastrophic. i believe that the end of the day albeit probably at the 11th hour an agreement will be reached that will solve and rein in spending and put into place real budget reforms. that is what we really need. >> neil: what do you make from the progressive caucus, it would be far more catastrophic to do a deal like this than to sign on to a deal like this? >> that just makes no sense to me whatsoever. because what they're saying is they are willing to allow the united states of america for the first time in our history to default on its obligation. that would be irresponsible.
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>> neil: so when they say they want to see revenues in the mix, i think the onus of this whole middle ground plan they argue is falling on the middle income and the poor and not on the rich and millionaires. we heard the argument before but they seem to be saying as a group? >> they are saying they want tax hikes. in order to do that in the midst of a fragile economy would be a real mistake. now, i am for tax reform, but we need to do tax reform that actually decreases rates. it would increase revenues because we could get rid of the $6 billion a year tax cut sleeper ethanol. that is kind of tax reform. >> neil: that would not be immediate? >> it would be part of the second stage of the package that
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is put together. there would be an opportunity for the special committee to look at tax reform. that is not what the progressives are talking about. they are talking about increasing taxes overall at a time it would really hurt the economy. >> neil: it's interest in go in this process. -- it's interesting in this process, the two sides have retreated to respective lierdz sides. the liberal members and democratic progressive caucus says no way in hell will we accept this deal. tea partyers say we got to see bigger spending cuts. enough on both sides to make you wonder whether anything has changed over the last 24 hours. >> there is a change. when i talked to mitch mcconnell
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a couple hours ago he was more confident that i've seen him be. now, it's not going to be. >> neil: harry reid says, you know, don't dot the i's and cross the t's yet. >> i think it will remain but the fact that everybody is going to be unhappy with some aspect of the agreement. i'm sure i'm not going to be happy with all of it. the fact is we have can't allow it to default. >> neil: the math is the math, isn't it? senator, thanks very much. are you ready to go? >> i am. >> neil: thank you very much. as we told you earlier, a lot hinges on getting a deal done that both sides might not love but they don't like the alternative of no deal a lot worse.
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that is one of the things that could be a lot worse to chew on when the markets open and they still have no wind of a possible deal. then we see something else. then the united states and on and on we go. our house plour is looking in this, that is secretly their wish to put them to the deal. >> the entire debate has been academic. i go back to the first failed tarp bill, they had a realtime existing metric to quantify what they had done. they did not pass the tarp bill and the market fell. they wanted get something in on paper so it would avoid an asian and go to europe and hit the dow on monday morning. now, we are week down the road and we are waiting to see what the asian markets are going to do tonight.
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if they will have a market fall, that would give it impetus. >> neil: i wonder, let's say you respond to an aggressive markets sell-off as was in the case of 2008, market falls nearly 800 points, they approve the bill but then it's down 4,000 points from that point. be careful what you appease and who you appease? >> nobody has come out and said that is what we want to do. talking to a few people around the building the past several weeks, something like that, may be not catastrophic like the day in september of 2008 and would give some immediacy to this problem. i ske minority leader, nancy pelosi, the clock is ticking even more. they are an intense meeting,
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house and senate democratic leadership in pelosi's office. whether they can get the right mixture, it comes down to the votes. we are hearing from the tea party folks they won't vote for it. liberals won't vote for it. how do they get the right mixture? that is the $64 million. >> or billion or hundreds of billions. let me ask you the math, -- 193 democrats, you have 87 new freshmen tea party republicans. a majority of whom have already said that they are not keen on making too many spending concessions. so just getting through the house would be dicey? >> absolutely. pressure will be brought to bear. i spoke with conservative lawmakers and they say this may
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swing on what house minority leader nancy pelosi decides to do. if she tells her caucus to vote against it. reaching out who yer's people, hey can you bring us 60, 70, 80 votes. at some point conversation has to be had and people on both sides of the aisle that is going to voted on something that is perfect. they are going to have to grit their teeth to do this. the president of the united states is supposed to be the chief whip in congress. we'll see what they can do. they still remember on the democratic side of the house around christmastime on the tax deal. they felt they took one from the team last des december. that memory is long here on capitol hill. >> they do hold grudges.
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>> fast moving developments and had everyone increasingly putting the heat and stakes on what happens with the asian markets start trading. reason for us to be back here, for continual updates but i'll be getting ready for a special report at 9:00 p.m. on fox business network as those markets open. we will be live back here tomorrow with the likes of eric schmidt, former google head now in a chairman role overseeing how technology handles all this. and tea party congresswoman whether she is providing heat or so much more coming up on fox news, fox business. we also got reaction early on in the markets from ted wiseberg. we've got later on what we're likely to see on wall street
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with ted and latest on house democrats could be the biggest obstacle. the house democrats. it gets more interesting. in sma. only one calcium supplement does that in one daily dose. new citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal.
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>> neil: we look for reaction anywhere we can and asian markets are opening tonight. something to consider on the middle eastern markets today. saudi arabia and united emirates israeli markets were down. they were very thinly traded markets more dictated by local markets. those are really responding to local developments and concerns of the global slowdown, not so
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much our debt development. we have ted wiseberg who have followed many -- ted wiesberg. what do you think happens tonight? >> i think the uncertainty is still going to create a negative entitlement. there is no question that last week, we were down close to 5% of the week. it was knee-jerk reaction on this whole deficit issue. it was compounded that got lost in the shuffle by an extremely week gdp number on friday. negative icing on the cake, if you will. >> neil: what is interestinging ted, this slow down in the economy, evidence what seems to be coming in fast and furious, not only the gdp reports and
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nokia laying off 13,000 people research in motion is going to lay off 2,000 people across the globe. a big financial player is going to lay off 10,000. are we looking at another recession potentially everywhere? >> i think that clearly that prospect is rearing it's ugly head a lot truer than folks expected. it's being masked at the moment by this circus, if you will, in washington over the deficit issue. it just seems incredible that these folks, either they don't understand the measure what they are doing at the moment and politics have clearly dictated the agenda. in my opinion, they are fooling on with mother nature at the moment. the sooner they can get it resolved, we're talking a couple days, i think they will get it
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resolved. they need to get it resolved without a lot of loose ends. unfortunately the process in terms of the markets has been more destructive and the conclusion of the event at this point. >> some people say they need a big sell-off much as we had in 2008, do you think it would get them off the dime and in the end would it even work? >> i would never root for a negative market environment to cleanse the system. that would be the tail wagging the dog. the leaders in washington, the leadership has to come from there. normally the market is a forward looking indicator but in this particular case, the government really needs to just get its act together and get it behind. there are so many other issues that the administration has to
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deal with, not at least of these weak economic numbers, they need to get them behind them one way or the other and with real substance so they don't run into this issue of the credit rating agencies coming back on them in three months and six months and we're right back in the stoop again. ted weisberg one of legends of wall street. at least that is what he tells me. asian markets, whether it comes tonight. we'll have reaction at least from the white house from the progressive caucus, we don't want any part of this and gop leaders, how do you convince a reluctant tea party this is in their interests? a tea party member on that. [ male announcer ] to the 5:00 a.m. scholar.
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>> neil: all of us predict this rebellion on the right and left. bernie sanders, 76 members strong, 75 in the house all saying this deal at least so bad they would not sign on to it. so better no deal than this deal. now on the white house might be going on. ed, what are you hearing? >> reporter: there has been a meeting where you are with nancy pelosi and harry reid and dick durbin. it's been going on for some time. they are trying to weigh this proposed deal and go through the fine print. that is coming with gravalca made a blistering statement saying that this deal trades in
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his words, people's livelihoods for the veoth of few right wing radicals. he feels the tea party is driving this deal, not the left or not the middle. it's interesting because david plus one of the senior advisors was working the talk show circuit and he answered some of the concerns that democrats may have. >> second stage is going to be a committee that is working in the tougher issue of entitlement reform and tax reform. this isn't about playing on a republican playing field. >> clearly there are liberals that this deal is being driven on a republican playing field. what david was talking about is the secretary phase of all this on which would be a special committee of congress that would look at other potential spending cuts, potentially tax changes, as well. when you have republican leaders like jon kyl the arizona senator on fox news sunday, look, this
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is not going to end up with any major tax changes, tax rates are not going up, saying that. it's making people on the left feel like this is pre-cooked and it's going to be a lot of spending cuts and no real tax changes. as you know, the beginning of this week, we started last monday, president obama's whole message this was going to be a balanced approach, taxes as well as spending cuts. >> neil: i do know this, since you arrived at fox, we have a constitutional crisis, financial crisis but thank you very much. [ laughter ] >> neil: great reporting throughout. ed henry. >> we've been takes about election among progressive caucus members. they are pretty much against the deal right now. we don't know the deal as it
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stands right now but there is some factions on the right, some tea party members also having concerns about a compromise they could be maybe overcompromise. we start with congresswoman republican from the state of washington. key parts in this whole debate, right hand, if you will, right hand of john boehner. congresswoman, good to have you. do allowing for my cynicism, what do you think the chances of a deal getting done before the deadline? >> i'm optimistic. a who large majority believes we should come up with a solution. i can't help thinking back to the beginning of the year when president obama wanted to raise the debt ceiling $2.4 trillion and there was a blank check. there were republicans in the house, we're not going to this until there are spending caps
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and reforms to the way the federal government spends money. we've got a long way. >> neil: tea party members, look you've got 90% of your low, whatever and then let's move on here. >> i'm not sure many of the freshmen understand what degree they have changed the way the congress operates. they don't appreciate that. last year we were debating more programs and second stimulus, cap and trade, there was a different debate that was taking place. today we're debating reducing the size of federal government, cutting programs and what the level of appropriate spending and changed the way the deals come together. speaker boehner isn't handing out at or about marks or projects to members' districts. you look at the healthcare bill, both parties operated that way. they've had a very positive impact on the way congress operates. i think it's a reflection of
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where the american people are. it's refreshing to see. >> neil: you know these numbers better than i do and you are constantly punching them. i'm thinking of the progressives 75 all of them say no to this and you have will 7 tea party freshmen, good many say no. it makes the math harder for passage just in the house, does it not? >> we're going to have to look what is a part of this agreement that they bring to us. speaker boehner has given the heads up he expects to have a conference call with republicans later on today to go through some of those details. he has made no commitments until he gets feedback from members. he has been transparent throughout the process that builds trust with him as leader and members of our conference. >> neil: you just don't sleep. >> we're on call, that is true. >> neil: thank you very much.
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not easy times. whether you are left or right or conservative or liberal, to be doing it with 90-degree weather outside and inside a room. enough of me whining about the heat. we do know that they are in pelosi's office. we'll have reaction from the senator there. we'll wait to see if a deal comes together, can they get anyone on board? more of that on after this. turn left.
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>> neil: all day long, we're close, we're close. harry reid, i'm optimistic. mcconnell saying i'm optimistic, but we do not have such a deal yet. we do have a senator from the fine state of maryland. where do we stand?
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>> i think we're all optimistic we'll be able to have a true compromise. difficulty we have to see the details. we have to get the votes. until you read it you know what is in it we're nervous. we're concerned they haven't been able to finalize it so there are still issues outstanding. >> neil: how much pressure does the progressive caucus hold says no, what we heard we don't like and we're not part of it? >> at the end of the day i suspect this will pass with a majority of democrats and republicans. we're not going to get a super majority from either party. that is probably wait the process should work. i expect some on both sides that will vote against this package. i don't know how i will vote until i've read the package. >> neil: what they said, look, if there are no revenues, i.e., tax increases we're not a part of this. >> as you know, many of us
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supported read's proposal. the joint committee that set up is clearly going to be part of that. it will be able to consider revenues. we're prepared to wait for another day but we do recognize we're going to have a comprehensive package. >> neil: the read measure is gone and back to the middle measure. what are you going going to be doing the rest of the day? >> the reid package is on the floor we couldn't get cloture. >> read tried to shelve it and move on? >> it's clear that the final plan will have to be endorsed by senator reid and mcconnell. they are working on that now. we expect that will come out of this. i don't think there is any illusions we will be able to get a bill for the president unless strong support from both leaders. >> in the meantime, if it looks like you are close to a deal, the indications that you are
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hearing that the president would grant a temporary extension, temporary rise in the debt ceiling under the belief that a deal was imminent? >> if we have a plan that has been agreed to by all the leaders, clear the votes to get it passed in congress and just needs to be done in an orderly way that could take us past thursday, i'm sure we can find a way to accommodate the debt ceiling. >> neil: thank you very much. mike, i'm listening to this and looking at the clock here. i'm wondering, it's getting close. >> reporter: no question. good afternoon to you. good to have you here in washington. we expected senate democrats to get a briefing from their leadership. you just had senator cardin and it's clear that briefing has been delayed. we understand from house republican sources they are working out final details.
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that has been the message throughout the day. we saw some senate democrat leaders heading for house democratic leader's pelosi's office. that meeting has run long but we heard from senator harry reid we still have a ways to go but a lot closer than yesterday. they are working on final deal but find more confident but liberals are not happy. chairman of progressive caucus, quote, this deal is cure as bad as disease. i reject it and american people reject it. only thing left to do is repair the damage as soon as possible. earlier the senate democratic leader says he is cautiously optimistic. >> i spoke to them and we are hopeful and we are close to agreements with republican leaders. framework of this agreement is based on new ideas.
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>> reporter: we've heard they are still working out the final details a senior aide is saying they are fighting to the last moment to get the best possible deal. >> neil: thank you very much. we got word that harry reid has left pelosi's office. that meeting among the democratic leaders has now ended. if we get any word on what tolerance peird we'll, of course pass them along to to you. and joining us is a senator on in whole saga, what are your constituents telling you. are they putting pressure on you? >> they are saying avoid default and number two, we want real spending cuts. we want to make sure that we control spending in the future and we want accountability. they are tired. these people are saying, enough.
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enough of those budget gimmicks and accounting tricks. we want real numbers and make sure we save money. the problem isn't this budget ceiling. the problem is the debt. the debt is the threat to our future to $14 trillion that we owe, so much to foreign countries we're borrowing $4 trillion. >> they say they would stand on principle just to do that or risk, not necessarily default, even if we default, it would be an inevitability but you would push a potential government shutdown or a lot of it shutdown? >> they want to make sure and continue to avoid default. >> neil: so if a bad deal, even if it avoids a shutdown is not a deal, is not a good deal? >> they want to make sure we
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avoid default and it cuts spending without the accounting gimmicks. >> neil: so you hear $1 trillion up front, $2 trillion close if the group agrees down the road. is that okay with you? >> dollar for dollar, i would like it to be higher number. i would like to send a message to the markets, $4 trillion. >> neil: they may not be happy. >> i still think i you are facing a downgrade. i would like to see bigger numbers. this is really the debt that is threat to america as we know it. >> neil: the ratings agency says $4 trillion is a bottom figure and $3 trillion, that is not their figure. so i'm wondering what happens if everyone grease to $3 trillion deal and the ratings agencies
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still downgrade u.s.a. do you feel like you wasted your time? >> no, but it calls attention to the fact we need additional cuts in spending and control spending long term. i'm not convinced that the administration understands that. >> neil: would you have wasted your time in getting a deal that leads to a downgrade? >> no, because this is round one in a 15 round fight of cutting and spending. we need to take a look at all the spending in this country, the entitlements that are big tidal wave because of the babyboomers aging. the president has not been focused on that. he has not been engaged until most recently as the "new york times" says he is on the sidelines. he is now engaged. we have to go fundamentally look at the biggest drivers of the cause and the cost of entitlements and need to cut
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spending. >> neil: senator, good so you, john borrosso. there is another group in the mix, blue dogs you hear much. they tend to vote fiscally conservative. their view on this after this. . but i was still over the edge with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol...stop. 80% of people who have had heart attacks have high cholesterol. lipitor is a cholesterol lowering medication, fda approved to reduce the risk of heart attack and stroke in patients who have heart disease or risk factors for heart disease. [ female announcer ] lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if you are taking other medications
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>> neil: at 9:00 tonight, the fireworks hit tonight. around that time there is a possibility that harry reid is going to bring up a vote the so-called middle measure that made be acceptable for democrats and republicans to keep the government financed through next year. 9:00 at fox business network,
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we'll be live. where are all the other business networks when the big story. they are running commercials but we will be there live at 9:00 p.m. tonight. so fox business. you are watching me right now. and joining me is congressman, what you know of the measure that has been kicked around the conditions to go yea and nay, get a deal together is credit line, do you like what you hear? >> there is a framework rather than running skillet commercials it's a question of the details. framework is a great chance for opportunity. >> neil: what is the detail that you are worried about most? >> i'm concerned about the frustration and committee evenly
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divided is putting power in geithner's hands. >> neil: secretary geithner would decide what things get done. >> comparing to medicare and defense, we remain a nation in war. >> neil: it's going to be, at least what i hear, it's going to be up to a commission. >> its delegation, what they are argue, whether medicare or defense. we know republicans and democrats would rather cut. >> neil: and they are the charging horse and you are leery? >> they would have no impetus on the commission who will make the ultimate determination within the democraticings. >> you know the pressure on the markets and you remember the pressure on the markets putting on congress to get it done. for all their temper tantrums at
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the time, they still sold off. do you think your colleagues should be listening to the stock market? >> listening to their constituents but leery about what markets are doing. we heard that was economic armageddon, it didn't happen. i think a lot of people who voted for the tarp program looked back and feel they got tarpooned. >> you don't want to be similarly? >> i do not care to be tarpooned or put in a pool of dead people that my constituents don't want. >> neil: so a potentially lucy deal even if it risks a partial government shut down? >> if we have time. >> but it risks default? >> wanting a bargain while there is still time. >> neil: wouldn't it be odd we
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meet the deadline? >> i think there will be resolution. washington tends go to down the last minute. and it makes people watch skillet commercials instead of thinking about this. [ laughter ] >> neil: and congressman, talking about the building, had different getting in the building so it tells you how confusing this process can be. we'll have rating agencies, $3 trillion plan for cutting in government spending over the next ten years, trillion less than some of the ratings agencies you hear so much about had asked to be. they wanted $4 trillion. this is $3 trillion. that is $1 trillion difference and that could be a problem. and blue dog democrat from the fine state of oregon.
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congressman, very good to have you here. first off it is f it is $3 trillion and not $4 trillion and moody's what trillion would be better, are you worried about a downgrade even if you sign on to this? >> we're worried all the time. the credit rating agencies credibility isn't that great. >> neil: only game in town. >> as a blue dog we would like it to be $4 trillion. we want to make meaningful spending reductions, meaningful tax reforms, cutting all the special tax breaks but go for a serious restructure. >> what about the progressive blue caucus, no, we don't like this deal? >> i actually read a letter, i less than 12 hours and 20 names from all over.
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blue dogs, progressives, leaders. >> neil: you don't think the comments from the leadership indicates all 75 members in the house? >> absolutely correct. look, there were 80 or 82 in the resolution for 2011 project. we kept sure to keep the engine running. >> neil: we're still waiting to hear from the foreign markets but they are not focused on our problems. there is a fear here we get a deal, it's late and by then the damage is done to our credibility if not our ratings anyway. what do you make of that? >> when i was talking to goldman sachs and j.p. morgan, some of the market has anticipated this. the stock market has gone down some. it will go down if we don't get
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the deal done on time. we need moderate members on this committee. that is the most important thing. we need moderate members, not compromising principles '. >> neil: i know you are in a group of folks that the extremes on both sides. that they doesn't get done because everyone retreats to their basis? >> i'm hopeful that the leadership in the house and senate, made up of a practical people. they espouse their diverse it in their caucuses but these are trained leaders and they under what it takes to get a deal done. i put my faith in them. >> neil: congressman, thank you very much. all right. you heard what the congressman had to say. and he hopes it gets done and
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cooler heads presumably prevail. know we're ready to see how the asians markets do. we're not close to a deal. then what? >> you know, friday when the chinese media talked about donkey and elephant and common sense within its mean. no doubt that politicians have fanned the flames of fear in this. all day today, every time i looked on the internet there was a big talk about a gigantic crash tomorrow. i hope it doesn't happen. i told everyone in my office to report earlier than normal. >> neil: so you must be a cruel and mean boss? >> i am. >> neil: leaving that aside. the ratings agencies have said $4 trillion. i hate to keep pound that go
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same issue. this is not $4 trillion. it's not even close. >> you say $4 trillion and moody's is saying $3 trillion. ratings agencies, maybe they are too far over. if you look at what is happening in europe. europeans have disregarded credit agencies. they say forget it when it comes to greece. we're going to hold this greek paper and we're going to cut a deal with greece. it may come down to that. the world understands it's a debt issue. smart people who make long term investments understand the real issue is that america is losing credibility by borrowing too much money, not borrowing too little money. >> neil: charles payne, thank you very much. on the phone, nancy pelosi is done meeting. what is going on here. the very latest.
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>> hi, neil, i got finished at the meeting, i can't even tell you, reid and his leadership came into the senate popped out of there. we were literally just jammed trying to follow senator reid to his suite of offices. we kept asking, do you expect there to be a deal tonight. do you expect to be a vote. he turned to us and said, we hope to. so clearly the majority leader has on his mind, having a vote tonight and, of course, as you know, you've been following this so closely. time of the essence and we are really running short. >> neil: i apologize, i thought we were going to end the show at that point. we did not. i'm sorry for looking inan tentative. i want to get what your sense is whether a deal was in fact imminent or whether the two
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sides that harry volunteered going to something? >> it really feels like they are getting extremely close. we're already getting these rumors that perhaps maybe three people in the leadership has signed off and we're waiting for boehner. we're getting a little bit of signs they are closing in and getting closer than we heard earlier today. i think the desire really is to solidify the deal tonight. having been up here for years, i can tell you that is a very heavy lift getting legislative language and getting the budget analysts and getting everybody on board. they have to brief the members of their caucus. it's very heavy lift in the hours that are remaining. either late in to to tonight or reid has everybody back earlier in the morning and they are voting. >> neil: they can change their own rules. it's 30 hours, they can change that and they can change their
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rules on a whim? >> this is an odd place as you have figured out. one thing to remember about the senate it takes all 100 senators to agree and then they can do anything they want. they can change the rule is on a whim. he has a path to get a vote and he can do it if he wants to. >> neil: thank you very much trish. they hope to do something, maybe tonight, maybe when we're on at 9:00 p.m. when fox business network goes live on these ongoing developments. everything hits the fan presume at once, possible vote on a middle ground to keep the u.s. government operating past tuesday. foreign market reaction to that from asia. our own stock futures, all that transpiring on fox business tonight. the only business network that will be open for business because it's your money and it's your life. we think it's a big deal. we'll be back here tomorrow with
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eric schmidt and so many others. your world, your money, your life, your future, we're here and we're not leaving. we hope to, that was the senate majority leader harry reid's answer when asked if they will get a deal done tonight and whether they will vote tonight. take a look at harry reid and other democrat senators leaving nancy pelosi's office. this as new opposition to a tentative bipartisan deal takes shape. it comes from party die-hards on both sides of the aisle. could that jeopardize the default deadline. im greg. >> we have lots of questions and negotiations to be had. welcome to a brand new hour of
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america's news headquarters. the white house and congressional leaders trying to settle the issues. biggest challenge from both sides to convince rank and file members to come along. that may be easier said than done. they are meeting in house and nancy pelosi's office, overseas markets and some already open and set to open shortly are shortly watching the drama on capitol hill. you will see how u.s. stock futures react. mike emanuel is live for us on capitol hill. we'll start with the democrats, what is their take on the proposed deal. >> sounds like the most liberal members are unhappy with the deal. one thing they don't like about it is the fact they thought tax increases and closing loop holes was part of any package to tackle the debt
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and deficit problem. here is a key democrat on that issue. >> it is a bad policy and with the gang of six and we came to a conclusion if you are serious about real long-term deficit deduction keep it on the table . keep rev news off of the table may be a mistake. >> you cannot just cut your way in terms of government spending in terms of better fiscal responsibility. they are told about a deal and my question is, will they buy on to a deal, the clock is ticking. republican leaders don't think they can sell it to conservative members. one thing that is in a trigger mechanicism is the idea of defense cuts. that is making conservative republicans uneasy and unhappy. bruwhat republican leaders are
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doing is selling how far they have gotten the dialogue with the white house to come. >> it was three months ago. that the president insisted on a clean debt extension. we'll have a significant amount of spending reductions in this proposal. the second thing was he insisted on revenues and tax increases. there will not be tax increases in this proposal. >> you better believe that all key congressional leaders will cross their ies and figure out how many they can get on board. when you talk about the potential impact on the market they will not want a miscount. >> it comes down to numbers in more ways than one. >> and the debt prompting a rare scene in the u.s.. normally we have seen them with a monologue and earlier today, two of the senate's
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members engaged in a pon tanous back and forth and listen to the feisty change between the republicans and dick durbin as they squared off over the debt. >> the senators from illinois believe that we are close to an agreement here? >> i hope so. do they agree most likely that agreement will not increase in taxes associated with it. >> i hope not. >> i hope there is revenue included in the agreement . everything that i have heard is they have not got it. being in the leadership. i am not party to this but the gang of six fiscal commission we believe we need consideration to reduce the national debt. >> i assume that that would also mine that the senator from illinois advocate another
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stimulus package. >> i want a stimulus to the economy to create jobs and help those out of work to find work with training and education. >> that's close to a real debate you will see on the floor of the united states senate. >> unreal . this is what we know about the potential deal on the table. it would raise the government spending power three trillion and the plan would call for an immediate cut of two trillion in federal spending and two trillion later by a special committee with a deadline by thanksgiving. >> we told you about new videotape of harry reid following the meeting in nancy pelosi's office. listen to this. >> you expect it today. >> i hope so. you think you can get a deal senator reid today?
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>> i think there was another hope so in there. you get the picture. >> we are getting new reaction to the tentative debt deal pouring in and who is backing it and who is not. we'll bring in republican senator johnnie isaacs and a member of the foreign relations committee. senator, based on what you know of the compromise deal, are you inclined to support it? >> yes, i am. principally the two things we agreed on three trillion increase. and three trillion in cuts and no longer putting our grandchildren's future at risk and take the debt ceiling increase beyond the 20 12 election and for predictability in the market is good and last piece to be
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negotiated is what is the enforcement mechimism on the cuts done by thanksgiving. america should not default on the debt congress should not default on america. >> are you worried about the defense cuts that might be mandatory in the event of a trigger? >> if you don't have a trigger and you don't have a silver bullet, you don't have a deal. everything has to be on the table whether it is defense or entitlements. we have a big target and budget and deal with the budget. >> i spoke with senator mike lee. he will not vote for anything that does not include anything but the balanced budget amendment. isn't that miopic. >> and they are getting everything they want and no tax hikes and significant
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spending cuts and enforcement triggers and so do you worry that the conservative tea party members will snatch defeat from the jaws was victory. >> it would be unfortunate to look and say i am going to reject it. we have cuts that we wanted and there are no tax increases and there are not any tax expenditures in the deal. it would be unfortunate to not support it over an isolated or single part of it. >> i was reading your recent remarks in which you said and i will quote. you are worried about the default on our debt. senator, our treasury takes in $200,000 million in revenue and the debt payments are 29 million and no reason not to make the payments therefore . is a claim of a debt default in your own words exagerated.
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>> no, i was in the real estate business and i had signed a lot of notes and made lots of commitments and if you put yourself in a position to not live up with your debts you have default. >> if you have 200 billion and your debt is 29 billion. you not only could pay those debts but social security and medicaid and military pay and veterans and still have 66 billion left over. sir, once again, isn't your claim of a debt default exaggerated. >> if we fail to raise the debt ceiling. after all of the tricky accounting is over, you will confront a default or default on the mirn people by ultimately eroding the commitments to them. it must be triggered by cuts
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so you are not borrowing the future. 71 percent disapprove of your party's handling of the debt negotiation. in the end, are you going to win the battle but lose the american people? >> i am in this thing for the american people to win . i share the disappointment for the way it is handled. a deal is at hand and we need to make the deal and the cuts so that america can change the spending habits and restore confidence in the debt and moves forward in the 21st century. >> thank you, sir. i know it is a busy day . we appreciate you taking a moment to speak with us. >> thanks, greg. >> we are keeping it fair and balanced on the fox news channel. democrat lawmakers reaction to the latest developments on the other side of the aisle in a moment. >> the new figures showing
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that the u.s. economy grew 1.3 percent . now they are blaming the debate for the sluggish pace. jim angle is live with us in washington with more. >> hello, healther. verbal fist cuffs are shoying growth dramatically slowing since the end of the recession and staying above water. the fight over the debt ceiling is one of therancy. >> we allow the uncertainty of whether our country goes in default. that is a self inflicted wound. >> we have to remove this. but that doesn't explain why the growth was sharply downward to only.4 percent or growth in the second quarter 1.3 percent.
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administration officials deny it has anything to do with the president's policies. certainly we have had head winds that hurt the economy. higher oil prices and supply chain disruption in japan. >> the president is acknowledging that the stimulus did not keep it as promised . senator mccain pointed to 9.2 percent unemployment along with economic measures. >> whether it is the housing starts and deficits and unemployed, whatever it is. it has gotten worse since the stimulus pack annual was passed rather than better. >> they blame the heavy end of washington for the increasing head winds. martin said in his statement, it is clear that the policies of this administration which had increased regulatory
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burdens and raised the uncertainty for small businesses made it difficult for the economy to grow and create jobs. debate over how to get the economy going gets more and more pointed as growth slows to a crawl. and financial markets are set to open shortly in asia and could begin trading without a debt deal. it is uncertainty in washington and world markets and washington when it opens tomorrow . brandon buckener joins us. 45 minutes from now. asian markets will be opening and what do you expect to see? >> it is hard to say. we'll see a downed market. i don't know how much . there is some who say that no deal perhaps, a downgrade would be a good thing for america. >> why? >> we are forced to realize
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that we cannot consume forever . that we cannot print money forever. but clearly in the last week or so markets are following the financial crisis in europe and here. interest rates could go up. but the thing is, the obama administration has made this out to be an armageddon. the truth is, they are going to have to place priorities on what they pay. we have money to pay some things it is not like all of the sudden, the spick on the -- spickot is shut down. >> wouldn't that mean higher interest . higher borrowing costs for business. that negatively impacts. >> on the economy. it is it a reality check. how long do we continue to print money? i mean. >> as long as there are
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printing presses. >> that's true. but if that itself has a cost. this is for the hardcore conservatives who say we are spending too much and mighting a positive in forcing us to face the cons consequences. >> and speaking of economic growth. gdp crew 1.3 percent in second. firster 0.1 percent . ieh global. they now expect third quarter to be less than two percent and maybe less than one percent. could we be heading for another recession or double dip. there is no way we can grow out of what is going on. i mean, a double dip i think
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it is pretty certain we are headed there. >> thank you very much. >> developments are changing by the minute. we'll bring them to you as we get them and plus held captive for two years after a sight-seeing hike went wrong. a passenger plan t the details are coming up. [ male announcer ] it's a fact: your nutritional needs can go up when you're on the road to recovery. proper nutrition can help you get back on your feet. three out of four doctors recommend the ensure brand for extra nutrition. ensure clinical strength has revigor and thirteen grams of protein
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>> here are the other stories we are following. a 16 year old boy died after being shot in the head in a george clinton concert last night. police have not found the gunman. >> divers are searching a new hampshire pond for signs of celina cass. they are looking in new hampshire, vermont and can dampt and the national transportation safety board sending investigators to ghana plan crash . the flight ran off of the runway after midnight in driving rain. but mostly minor injuries were reported.
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we are back to the nation's debt crisis. senate majority leadership telling fox news that he hopes to have a deal and a vote tonight. he was leaving a meeting in minority leader nancy pelosi's office. they are getting closer to a deal to raise the debt ceiling and put an end to the debt crisis. here is the democrat from washington and senator democrat. >> pleasure to be here. two percent more in debt reductions later this year. you are a member of the caucus and your members are coming out swinging. the chairman releasing a statement saying this deal is cure as bad as the disease . he rejects it. the only thing now left to do is repair the damage as soon as possible. do you agree?
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>> i voted to raise the debt limit on the 31st of may. 95 of us took the step we should have taken then. the manufactured political crisis since then is a political exercise. we knew it had to go up and we raised it five times for george bush and seven times for bill clinton and raised it 39 times since ronald reagan in 1980. we have done it always without a mess. this mess is created simply to get the president of the united states in a bad place for the next election. it has nothing to do with creating jobs . that's really the problem here. by cutting government in every level, you are cutting jobs and there is no evidence whatsoever that cutting the programs for the government are getting jobs for people. we have 9.2 percent of the people with no employmentment
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>> i need your response and breaking news according to our white house senior producers right now. it was confirmed that senator reid signed off on the debt ceiling agreement, spending caucus approval . this is just coming in to our news room. senator reid signing off on the debt sealing agreement . what is your reaction . if mitch mcconnel doesn't do a parliamentary restruction. john boehner proved he can get the votes out of the members. >> many conconservative tea party members oppose and are not happy. who is happy with the compromise? apparently senator reid?
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>> the republicans have the votes in the house. they don't want to compromise and they participated in creating the crisis and they will have to dig themselves out of it as they did passing the bill to the senate. there is a lot of them who will go home and explain. i went to washington and i learned it was not the way i thought it was. i actually learned something. >> a lot of people learned a lot in how it all transpired, all of american in general and a lot of them are not too happy. >> i want to move beyond the vote . all of the alarm and panic over the government default is blown up to make president barack obama look bad. it is about the 2012 election. nothing to do with debt or cutting the budget. it has nothing to do with tax increases or anything else. do you really believe that? >> i absolutely do.
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we could have quickly raised the debt limit and moved own to balance the budget. no one on the democrat side doesn't believe that we can't make reductions in government spending. we would have done a bipartisan process. what people are voting on is a two or three trillion dollar bill that never had a hearing and no one has seen the language or anything. now doing government on the back of a gallops horse and not good public policy and the american people are not well served. >> and in terms of taking a look at something or not having an opportunity to look at something. this is the first time that we have been in this situation with this particular administration and we waited to the last minute and pushed through things quickly because they needed to. >> senator mcconnel has been
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using the filibuster as an obstruction tool to prevent the majority from ruling in the senate. they used more filibusters than any other congress in history . you go back for 20 years, you will not find altogether. they have made it impossible for harry reid to act. it would have been possible for all of this to be done if mcconnel said right out of his mouth. my number one objective is prevent the reelection of barack obama . that is what this is all about. >> thank you we appreciate your time and insight . we wrap up. senator reid reed signed off on the debt ceiling pending caucus approval. >> and special riant. anchor bret baeur joins us
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live. there would be cuts but a bipartisan commitee that would tind the - find the cuts and triggers would kick in and include cuts and not the least of which is defense. does that have republicans worried? >> it does. a number of republicans are saying at this late hour they may vote against the deal because of that factor. we are hearing that the defense cuts are a large portion of the so-called trigger and to explain for the folks sitting at home. this giant committee of bipartisan lawmakers come up with additional cuts. they couldn't come up with enough cuts or votes in congress and from will be a punishment or trigger and across the board cuts and half of them are to defense.
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we are hearing the number is 540 billion . there would be cuts on the provider side of medicare . there are conservative republicans, not necessarily tea party republicans and they are settled on the house armed services committee who have real problems with this and they are finding out the details of this trigger and they are saying it is it a nonstarter for them. could this be by peeker boehner is taking longer to sign on to the deal it is it a possibility that we are hearing 40 plus members have a problem with the number in this trigger. in addition to those republicans who have concern about defense, there is a crowd of who are adament about a balanced budget amendment. i talked on the air with senator mike lee of utah. that is a deal breaker unless this includes the balanced
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budget amendment. i am not voting for it. that complicates it, too. >> it does. there would be an effort to have a vote on the balanced budget amendment as an appeasing motion to all of those folks. >> that is not good enough for him. >> he's not going to be one of those who votes for the ending deal. >> yeah, i think it is it a throw away and vote on the balanced budget amendment and not get two-thirds in the senate and tied to the deadline. bret, thank you very much. you will be back in 35 minutes from now and more on the weekend edition of a special report and fox's special of the debt coverage continues in prime time. new signs that we may be close to seeing a bipartisan deal on the debt crisis. right now, the senate agreement is hammered out in washington. we are live in the white house where administration officials are saying negotiation is not over just yet . new information on the
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american hikers held in iran. josh fattal and shane bauer. today new word on their fate. [ rge ] psst. constated? phillips' caplet use gnesium, an ingredient that works more naturally wityour colon than stimulant xatives, for fective reli of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna...
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plus get this document shredder, free! but only if you act right now. call now! lifelock service guarantee cannot be offered to residents of new york. >> and negotiations with the white house, they are not over yet and time is running out. chief white house correspondent is live on the south lawn for us. what is the state for us right now? >> reid signing on and sounds like the president has trouble with others on the left? >> it is absolutely. he can deliver a lot of votes just as nancy pelosi can do the same in the house. but the bigger problem for the house is rank and file
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members. progressives and liberals on the left and a blistering statement put out a while ago by the co-chair of the progressive caucus. he said this deal treats people's livelihoods for the right-wing radicals. i reb ject and the american people reject it. only thing now repair the damage as soon as possible. >> how do you repair the damage that the left sees? we are late in the process and that's why the president senior advisor basically said this is probably going to be the best deal we are going to get and the next phase of the deal will solve the problems. the second stage will be total reform and tax reform.
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we have progressives in the senate sanders a socialist in vermont who aligned himself with harry reid and said he couldn't support this deal either because it call its grotesquely immoral not to be taxes the rich and having this spending cuts. >> so a lot of weight on the shoulders of the special committee. is it going to be enough to appease the left. saying once we get to the next phase and report back to thanksgiving with spending cuts. they may have taxes on the table. but if you listen to john kyle he's taking a victory lap and said that is not going to happen. the president insists on a clean debt ceiling extension.
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we'll have reductions in the proposal . is the second thing he insisted was revenues and tax increases. there will not be tax increases in the proposal. >> if they don't wind up popping up in the big part of the deal down the road. progressives claim to have over people in the house and combine that with some on the right that don't support the deal because they are upset about defense cuts. it is it a tough fight in the house to get the final deal through. >> thank you so much. busy day and we know you need to get back to work. thank you. >> and want to give you the latest we are getting from capitol hill. chris turner, our producer on capitol hill said despite harry reid signing off on the debt ceiling deal it is not yet done. a gop leader saying the
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negotiation is not done yet and the source said empatically there are no votes on the debt limit tonight. as for the defense cuts, that bret bauer was talking about. they will alaid when the members see the agreement. minor cuts will come if the bipartisan committee fails to come up with a dole to act. with the agreement possibly in the works on the debt debate. where the president obama stand working with republicans to hammer out a deal actually hurt the president among democrats especially as the reelection did end. we'll talk about that with charlie hurd. good to see you. we just got this about an hour and half ago.
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that the house progressive caucus. a group of liberal democrats is blasting the deal and the president specifically for cutting government spending and failing to raise taxes and throwing progressives under the bus and those are their words. is the president by doing this, alienating his liberal base? >> i think without any question he is alienating his base. it is not just with this. he's alienated them before now with his failure to get the universal health care approved and failure to get out of the wars. this president has wrapped up two years of enormous disappointments for the progressives and when you talk, i am sure you have. they are blistering with anger and disappointment about what a let down this administration
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has been for them. and in fact it may be reflected in polling data, not that independents are progressives. but the president is down 20 points among the independents in a fox news poll . he won that key group 52 percent and down 20 points and yet, charlie, he, the president beats nearly all republican contenders except for one mitt romney and he ties hip. you would think ifly is down that much to independents, he would be way behind all of the republican contenders and he's not. how do you account for that? >> i think it is impossible at this point. the match ups are speculative. no one has invested in midromny or the other candidates . you know, they will probably close that gap. you know, something that
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important and that is, yes, he's disappointed and lost that key base, and the rock solid foundation that supported him. but the truth is, they are not going to vote for rick perry or sara palin. they are going to come back and maybe hold their nose and vote for him for reelection. they will not desert him. the real problem for him is the staggering loss among the independents. more moderate people who are disappointed with the republicans and hungry for change and voted for this guy, not thinking he was a liberal . not thinking that tax hikes are the answer to everything and government is the answer to everything. they are so disappointed in him and he's lost them and that's where his campaign gets nervous. you think there is it a
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leadership deficit and your column a couple of days ago at the president. whole problem with the teleprompter can't come up with the a plan. this is why president obama is the only person in washington who hasn't come up with a plan. as you know. bills emanate from congress and it is in the constitution and they start from the house. >> sure. >> and the president has been involve would and he's been on the phone last night and today and so forth. >> he's the leader of the party that makes things happen with the house. the republicans in the house are the only ones that passed a deal in the chamber. the democrats couldn't produce a product that came out of the senate which they control. obviously it is a different
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field there. if democrats can up with something out of the senate and chamber they control we would be further along in the new yorks and democrats would be doing a lot better in the deal. president obama should have been able to pull that off and he wasn't. >> charlie. the washington times. fun talking to you. thank you so much. >> developing out of washington, fox news confirming that senator reid reed just signed off on a debt ceiling deal. but that deceem not not yet sealed. our team is working to get breaking new details for you. don't go away.
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serious negotiations unfolding in the washington white house .
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lawmakers are said to be inching closer to a debt deal. hairy -- harry reid signed off . when all is said and done does anyone look political stronger? we have a democrat strategist . chairman of the civil foreign pact. >> thank you. >> a very busy day. who do you think coming out on top in all of this? >> i think they look like a bunch of two year olds and giving two year olds a bad name. this has been a disturbing, disturbing political drama over the last few weeks x. american people are coming out and see that republicans have forced a reckless choice in the conversation about the debt seal that is a route to gut social security and
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medicare and medicaid out of our budget. i think they will penalize the republican party. >> i disagree. number one issue is jobs. taxes and regulations are killing the job market here. default we lose jobs and default we hurt the global economy. we can't raise taxes and improve jobs. the president is scared when his aprouval rating is 40 percent. if we default, it would be political suicide for my party. >> i want to bring this up. this seems to be developing as one of the sticking points in all of this would be cut to defense spending and not the social programs you were referencing . part of the deal and compromise.
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also there would be cut to medicare . i ask you, if this is perhaps coming on the heels of our military members. >> yeah, i agree. i look at this in the context of our economy. we have a fragile economy and talk about spending cuts, particular cutting things like social security and medicare. you are talking away money are that older people need. >> we are talking about half of those cuts coming from defense programs. >> in the future as a trigger . in the state we are in three wars. >> one of which you guys created? >> one of which we created yes. >> you boosted the spending in the other and no exit plan. you guys didn't help that one out. >> i think the words have been stirring up not created by us
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initially and i think that spending is blown and we need to do smart reductions there . but the entitlement cuts don't need to come at the expense of middle class merps. i understand why they are unwill be to sign. >> we need entitlement reform. we know there is inefficienciys out of there. we at the end of the day, we have to maintain the most effective fighting force and back our men and women when they put their necks out on the line for us. and at the end of the day to quote you. the debait continues on dapt capt hill. we are waiting what could be good news out of iran, these two american hikers in prison for two years could soon be free. there are new feelings of,
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coming up next. so me and the boys earned a trip to dc twice as fast! oh hi! we get double miles every time we use our card. and since double miles add fast... one more chariot please. ...we can bring the whole gang! i cannot tell a lie. he did it. right... it's hard to beat dole miles! read mlips -- no new axes! [ male announcer ] get the venture card from capital one, and earn double miles on every purchase, every day. go to capitalone.com. what's in your wallet? so, you're a docrat right?
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the call on president obama to epivoke the 14th amendment and they would argue and some constitutional experts would argue that they simply raised debt ceiling without anything associated with it. the white house rejected that . the president said his lawyers considered it and ruled that out. studio a of the capitol. black caucus. will call on the president to
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envoke the 14th amendment . this is after the progressive caucus claimed that the president threw them under the bus with the new debt sealing deal. >> two americans arrested in iran. josh and shane remain behind bars tonight. but their lawyer said they could be released by the end of the week. they are facing spy charges. today was the last court session in a case that carries with it the possibility of execution. lauren has more . >> you know, it was hoped that the two american hikers would be freed. but the aeye ranian court will not announce the fate until later this week n a statement, their families say we pray the iranian authorities will show compassion to shane and josh .
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ask everyone to join us to beseech the grace of god in this time. coming days will be difficult for our families. they were arrested two years ago to the day as they hiked in iraq in the iran can border. they were jailed on charges of espionage . they were released on 500,000 bail and will not go back to stand trial. on friday, family and friends rallied in new york ahead of the trial. they declared the week a week of action and urging people to show support for the two men who could face two more years of prison. >> complicating the issue the u.s. have appealed to their release. the lawyer hoped it would bring the immediate release
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because of the start of ramadan. >> and thank you lauren green. >> and major developments in the bipartisan plan and there are a few lawmakers holding out. helps defends against occasional constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic."
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FOX News July 31, 2011 1:00pm-3:00pm PDT

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